New York State’s gaming operators record $43m revenue in first full week of October
The state reported a 13.3% hold rate compared to the nationwide average of 7.2%.
New York State’s nine mobile gaming operators reported a gross gaming revenue (GGR) of $43m for the week ending October 9, making it the highest GGR recorded since the Empire State launched sports betting.
This impressive GGR return was explained as being the result of a “remarkably” high statewide hold rate of 13% ($319.3m) – which translates as a loss rate for gamblers. Experts were surprised as the state’s home teams, such as the Buffalo Bills, New York Giants and New York Jets all won their respective games, which should cover any spread bets made.
It was among the highest hold rates in New York since its launch in January – this was the second time the rate was at over 13.3% in the last four weeks. The average hold rate for sports gambling nationwide is around 7.2%.
The $319.3m in handle last week continued a sluggish autumn recovery after handles dropped significantly over the summer when most major league sports weren’t in action. The most recent handle still doesn’t come close to the $400m+ weekly handles seen in the early days of sports betting in the Empire State.
New York bettors wagered a substantial $1.26bn in wagers in September, the highest handle since May, but nevertheless slightly below predictions. The relatively slow fall recovery could be explained by diminishing sign-up bonuses or the off-putting 51% tax rate on GGR.
Efforts were made by New York legislators Joseph Addabbo Jr. and J. Gary Pretlow to add operators and reduce this heavy tax rate, but this did not make the current fiscal-year budget. So far, the state has made $488m from gambling tax revenue which may explain the state’s unwillingness to lower the rate.
Sportsbooks have complained that the high tax rate has discouraged them from offering promotions they regularly offer in states with lower rates.
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